A Partnership Has One General Partner, Allen, Who Materially Participates

question 90

Multiple Choice

A partnership has one general partner, Allen, who materially participates in the business. Allen had a $30,000 distributive share of ordinary losses for this year and the partnership had no separately stated gains or losses. There are no changes in liabilities during this year and there are no additional contributions or distributions. At the beginning of this year, the Sec. 705 basis was $40,000 and the at-risk basis was $15,000. The basis on December 31 of this year based on the above information is

• A)$10,000.
• B)$15,000.
• C)$25,000.
• D)$40,000.

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Definitions:

Adjusted R Square

A statistical measure that indicates the proportion of the variance in the dependent variable predictable from the independent variables, adjusted for the number of predictors in the model.

Adjusted R Square

A statistical measure that indicates the proportion of variance in a dependent variable that is predictable from independent variables, adjusted for the number of predictors in the model.

Best-subsets Regression

A statistical method in regression analysis that involves comparing models with different combinations of variables to select the best one.

T-test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.